The Government wants to reduce the cost of car insurance for the sake of young drivers and in doing so, clamp down on uninsured drivers who are putting the rates up.
It believes that the use of telematics or "black box" installation, which is a way of tracking vehicles, will mean there will be no more questions about exactly what happened during an accident, because it will be known on the GPS system.
The Department for Transport (DfT) has said it will work with the motor industry to tackle many issues and has vowed to lower the number of reported cases of whiplash, which are pushing the premiums up.
The Department said it supports a ban of referral fees in personal injury cases and an extension of the threshold for claims in the road traffic accident (RTA) personal injury claims protocol, from the current £10,000 to £25,000.
The Cost of Motor Insurance, a report by the transport select committee, shows that the rising costs of insurance throw ups "important issues with significant economic and social impact for all motorists, especially for young drivers".
Neil Greig, The Institute of Advanced Motorists' director of policy and research, said: "More must be done to help young drivers stay safe and obtain affordable insurance."
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